Reference no: EM132639069

1. What is moral hazard, how does it increase the cost of medical care, and how can it be limited?

2. What does the loading charge consist of, and how does the size of the loading charge affect the type of health insurance purchased?

3. What is adverse selection, and how do insurance companies protect themselves from it? If the government prohibited insurers from protecting themselves against adverse selection, how would it affect insurance premiums?

4. Discuss how Medicare's patient and provider incentives affect efficient use of services.